Short-Term Rental Laws in Indianapolis, Indiana

Indianapolis operates under Indiana HEA 1035 (2018) which preempts local STR bans in residential zones. The city's ordinance (Marion County Code Chapter 807) requires STR Permit + Owner-Occupied vs Non-Owner-Occupied classification. Owner-occupied STRs are permitted by right citywide. Non-owner-occupied STRs in residential zones are capped at 180 nights per year per property (state law allows local nights cap). The 180-night cap targets pure-investor whole-home operations in single-family neighborhoods while preserving owner-occupied flexibility.

Owner-occupied STRs allowed in all residential zones (D-1 through D-12 dwelling districts) without a nights cap. Non-owner-occupied STRs in residential dwelling districts: 180-night annual cap. Commercial (C-1, C-2, C-3, C-4, C-5, C-6, C-7) and mixed-use districts permit STRs without the 180-night cap. The Regional Center / Downtown overlay districts and certain Historic Preservation overlays (Lockerbie, Old Northside, Chatham-Arch, Herron-Morton, Fountain Square) add design-review requirements. Properties in HOA-governed condos/townhomes need separate HOA approval.

Operators must hold a short-term rental permit before listing. See the official permit portal.

Department of Business and Neighborhood Services administers the STR Permit program. Annual renewal. Application requires designated local 24/7 contact (responsible party within Marion County), proof of property insurance, life-safety self-certification, parking plan, and (for non-owner-occupied) attestation of the 180-night cap. Marion County Treasurer + Capital Improvement Board collect the 10% Innkeeper's Tax. Operating unpermitted: civil penalties starting at $200/day per violation. Code Enforcement cross-references Airbnb/Vrbo listings against the permit registry.

Combined short-term lodging tax in Indianapolis is approximately 17.000% of gross nightly revenue (state sales + state TRT + local TRT + applicable resort/city options).

Indiana State sales tax 7% + Marion County Innkeeper's Tax 10% — combined ~17% on transient lodging; confirm at Marion County Treasurer / Capital Improvement Board

Verify the current combined rate via the Utah State Tax Commission before remitting — rates drift quarterly.